Law: Income Tax Act, 1922

Section: 49,10(2)(vi)(b),24,49D,10(2)(va)

(a) Income-tax Act (XI of 1922)---S. 49-D read with Ss. 10(2)(vi)(b) & 24-Assessment of foreigner residing in Pakistan-Income of assessee earned in foreign country taxed in such country and included in income declared in Pakistan--Assessment resulting in carried forward loss due to unabsorbed depreciation-Income earned in foreign country not taxed in Pakistan--Held, provision of S. 49-D does not come into operation in circumstances of case. (b) Income-tax Act (XI of 1922)---------- --- S. 10(2) (v-a), Explanation-Depreciation on machinery-Assessee's machinery not installed between dates mentioned in Explanation-Held, not entitled to benefit of special depreciation prescribed in cl. (v-a) of S. 10(2). ORDER A. A. ZUBERI (MEMBER).-This appeal has been tiled at the instance of a company which is a manufacturer and vendor of packing material, is running a Paper Board Mill and has a corrugating plant. The appeal assails order-dated 15-9-1979 passed by the learned Appellate Assistant Commissioner, A-Range, Karachi in respect of assessment year 1973-74. The following issues came up for adjudication: 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Tax paid in Tanzania.-The learned counsel explained that the Appellant performed some management consultancy work in Tanzania. The earning of Rs. 5,92,513 were taxed in Tanzania and a sum of Rs. 85,947 was paid. This income earned in Tanzania was, admitted included in the Income declared in Pakistan but due to unabsorbed depreciation the assessment resulted in a carried-forward loss. The assessing officer, did not give any benefit for the tax paid in Tanzania thus denying to the Appellant benefit under section 49-D of the Income-tax Act. The learned counsel pleaded that the provision of subsection (1) of section 49 were clear that if a Pakistan 'resident' proves that in respect of income which is offered by him for taxation in Pakistan, tax had been paid in…

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